• The research used a labor simulation tool called the Iceberg Index.
• Early findings indicate that tech and IT layoffs account for only 2.2% of wage exposure.
• The largest impact is seen in routine HR, logistics, finance, and office administration functions.

Massachusetts Institute of Technology has reportedly unveiled a study that found that artificial intelligence is capable of replacing up to 11.7% of the U.S. labor force. 

According to a CNBC report, the potential disruption spans industries such as finance, healthcare, and professional services, equating to approximately $1.2 trillion in wages.

Mapping AI Disruption

The research used a labor simulation tool called the Iceberg Index, jointly developed by MIT and Oak Ridge National Laboratory (ORNL), which tracks interactions of 151 million workers nationwide. 

The platform provides insights down to the zip code level, helping policymakers understand where AI-driven changes may have the hardest impact, the report stated.

Prasanna Balaprakash, ORNL director and co-leader of the project, described the tool as a “digital twin” of the U.S. workforce. It maps over 32,000 skills across 923 occupations in 3,000 counties, simulating how current AI systems could already perform these tasks. 

Early findings indicate that while tech and IT layoffs account for 2.2% of wage exposure, routine roles in HR, logistics, finance, and office administration represent a much larger underlying impact.

Policy Planning 

States such as Tennessee, North Carolina, and Utah have partnered with the researchers to validate the Index and build AI workforce policy scenarios. The interactive platform allows policymakers to test training programs, budget allocations, and technology adoption strategies.

The Iceberg Index challenges the notion that AI risk is confined to major tech centers. Its simulations reveal that automation threats extend across all 50 states, including rural and inland regions. 

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